ALASKA

1
2007
ALASKA!
A Frontier for Mineral Exploration!
A presentation sponsored by the State of Alaska,
Department of Community and Economic Development
and the Alaska Miners Association
2
Alaska

• Regulatory and political stability combined
  with a strong geologic endowment make Alaska a
  good place to invest!

Courtesy of Usibelli Coal Mines
3
Why Alaska?

• Alaska is largely unexplored
• Its elephant country (Red Dog, Ft. Knox, Greens
  Creek, Donlin Creek, Pogo, Kensington, Pebble
  Copper, Kennicott)
• 298,600 sq. miles available to mineral entry - An
  area as large as Chile and 2.7X the size of
  Nevada
• Proactive administration

4
Alaska

• The Minerals Industry -
• A Global Perspective

5
Alaska Bridging the Pacific
Alaska - 570,400 Sq Mi. (land) 86,050 (covered
by water)
Pop 665,000
Source www.geographic.org Used with permission
6
Alaska in a Global Market

• Alaska is competitive in the worldwide economy
  against other countries and states because it
• has a diversity of mineral deposit types
• is safe from social and political upheaval
• has reasonable and transparent regulations
• is easily accessible from other markets
• has modest investment incentive programs

7
Worldwide Exploration Expenditures
7.5 Billion for 2006, US 8, 600 Million, AK
30 of total US _at_ 177M 25 for 2005 _at_ 104M
Alaska
Source Metals Economics Group
8
(No Transcript)
9
Alaska Mineral Industry Value

10
Alaska

• A Place of Opportunities

11
Alaska offers

• World-class mineral endowment
• A cooperative regulatory and legislative
  environment
• A stable tax structure with incentives
• A multitude of agencies and associations
  assisting in all aspects of mine development
• Strong educational resources and facilities

12
Alaska is Accessible!

• Well served by commercial logistics operations
• Regularly scheduled air taxis and charter
  services to small communities and remote locales
• Alaska Marine Highway - connects 28 Alaskan
  cities with BC and Washington
• 14,300 miles of public roads
• Alaska Railroad - 470 Miles long
• Thousands of miles of navigable rivers with barge
  service

Photo Courtesy of Alaska Railroad Corp.
13
New Infrastructure -Inroads to Resources
Existing Roadway Marine Highway TAPS - Oil
Pipeline Alaska Railroad
14
Alaska Land Status
Over 250,000 sq. miles of State, Native, and
selected Federal lands available for mineral
entry. Status is well known, stable and has no
encumbrances
15
ALASKA LAND STATUS
MILLIONS OF ACRES
52.3 Open, 47.7 Closed to mineral
exploration State of NV 70.8 M acres in size -
37.0 the size of AKs open area. Closed area
(174.4 M acres) gt the size of Texas (171.9 M
acres)
16
Alaska Native Lands 44 Million Acres of
Opportunity

• Ahtna Inc
• Aleut Corp.
• Arctic Slope Regional Corp.
• Bering Straits Native Corp.
• Bristol Bay Native Corp.
• Calista Corp.
• Chugach Alaska Corp.
• Cook Inlet Region Inc.
• Doyon LTD.
• Koniag Inc.
• Nana Regional Corp.
• Sealaska Corp.

Donlin Creek Exploration Camp, Chulista Camp
Services
12 state-chartered, profit-oriented, regional
corporations mandated by ANSCA in 1971.
17
Alaska Native Lands
Arctic Slope Regional Corp.
Alaska Native Corporations have clear ownership
and title to 44 million acres of land and are
willing to work with you to develop mineral
resources!
N.A.N.A. Regional Corp
Doyon LTD
Bering Straits Native Corp.
Cook Inlet Region Corp.
Ahtna Inc.
Calista Corp
Chugach Alaska Corp.
Bristol Bay Native Corp.
Sealaska Corp.
Koniag Inc.
The Aleut Corp.
18
(No Transcript)
19
Alaska

• Geology The Bedrock of Successful Exploration

20
(No Transcript)
21
(No Transcript)
22
TINTINA GOLD PROVINCEOverview
Adapted from Rubicon Minerals 2001
23
Tintina Gold Province Worldwide Comparison
Tintina Gold Province gt25 Moz The Former CIS
370 Moz West Africa gt50 Moz

• Characterized by pluton related gold deposits
  broadly distributed in geologic time and space,
  Alaskas Tintina Gold Province is newly
  recognized and may generate even more ounces with
  additional exploration.

Photo courtesy of Novagold Resources
24
Massive Sulfide Districts and Deposit Locations
Adapted from Rubicon Minerals 2001
25
Juneau Gold Belt
Area of Detail
Adapted from Rubicon Minerals 2001
26
Energy and Industrial Mineral Deposits
Northwest Arctic Coal
Red Dog Barium
Nome Sand and Gravel
Prudhoe Bay
Beluga and Chuitna Coal
Horn Mountain Zeolites
Wishbone Hill Coal
Lime Hills Barite
Chugach Zeolites
Yakutat
Calder Limestone
Adapted from Rubicon Minerals 2001
27
Alaskas Industrial Minerals

• Gypsum 500,000t mined from Chichagof Island
  (1902-1926).
• Limestone Calder Mine in SE Alaska capable of
  producing 60,000t of high-grade whiting
  limestone annually.
• Asbestos Fortymile district contains chrysolite
  reserves of 55mt at 6.5 asbestos fiber.
• Barite 865,000t mined in the State. Millions of
  tons of barite mineralization delineated in
  Noatak SEDEX district.

Gypsum
28
Alaskas Sand and Gravel

• 1.17bt of sand and gravel and 127mt of building
  stone worth 2.9 billion have been quarried at
  over 200 locations
• 16.6 mt (77 million USD) in sand and gravel
  production in 2005, industry employs nearly 600

• Novagold Resources Nome Project contains 2.255
  Moz gold in 295 MCY of sand and gravel aggregate
  to be developed for southern markets.
• Large coastal gravel deposit being investigated
  near Yakutat by Sealaska Corp.
• 6 train loads of gravel per day hauled to
  Anchorage from Palmer for construction projects.

Gravel loading facility in Palmer Alaska
Railroad Corp.
29
Alexander Platinum Belt
Area of Detail
Area Of Detail
Adapted from Rubicon Minerals 2001
30
Interior Alaskan Platinum Districts
Adapted from Rubicon Minerals 2001
31
Important Alaskan Discoveries

• 1880 - AJ-Treadwell (Au)
• 1900 - Nome gold placers
• 1902 - Fairbanks gold placers
• 1910 - Kennicott Mine (Cu)
• 1968 - Red Dog (Zn, Pb)
• 1974 - Quartz Hill (Mo)
• 1979 - Greens Creek (Ag, Zn, Pb, Au)
• 1984 - Fort Knox (Au)
• 1987 - Pebble Copper (Cu, Au, Mo)
• 1988 - Donlin Creek (Au)
• 1994 - Pogo (Au)
• 1995 - MAN (Pt, Pd)
• 2000 - Northway (Au)
• 2001 Shulin Lake (Diamonds)
• 2001 Kugarok (Ta)
• 2005 LMS, Whistler, Terra
• 2006 - Your project here!

Photo Courtesy of the Alaska Historical Society
32
Alaska

• Producing Mines

The foundation of a 3 Billion U.S. Dollar
mineral industry!
Photo courtesy of Kinross Gold
Fort Knox (Fairbanks)
33
(No Transcript)
34
Fort Knox Mine
Kinross Gold Corp. Owner/operator
Photos courtesy of Kinross Gold
Operating open-pit gold mine producing
approximately 330,000 ounces annually from the
Fort Knox deposit. Average combined grade is
0.023 ounces per ton. The mine employs over 400
people and has an annual economic impact of 175
million on the community of Fairbanks.
35
Red Dog Mine
In a class by itself!
Photos Courtesy of Teck-Cominco
36
Red Dog Mine
A joint venture between NANA Regional Corp. and
Teck-Cominco
The worlds largest zinc reserve (121 million
tons of ore). Worlds largest producer of zinc
concentrate. 3 million tons of ore mined
annually at an average grade of 22 zinc, 6 lead
and 3 ounces per ton silver. Mine employs 450
people (including contractors) 50 of which are
NANA shareholders.
Photos Courtesy of Teck-Cominco
37
Greens Creek Mine
Joint venture between Kennecott Minerals
(owner-operator) and Hecla Mining
Volcanogenic massive sulfide deposit containing
economic amounts of silver, lead, zinc and
gold. Producing 800,000 tons of ore from
underground mine with an average grade of 17
ounces per ton silver. 3rd largest silver
producer in North America. Located in USFS land
exchange area of the Tongass National Forest.
Photos Courtesy of the Kennecott Greens Creek
Mining Company
38
The Pogo Mine
A Sumitomo and Teck-Cominco joint venture
Intrusive related, shear-hosted, gold-quartz
vein system. A grassroots discovery in 1994.
Contains 3.6 million ounces of gold at 0.47
ounce/ton Construction started in 2004, initial
production scheduled for 1st quarter of 2006.
Employment 238 people during production.
Production rate 2,500 tpd. Mine life 10 years.
Annual production 450,000 oz.
Photo Courtesy of Teck-Cominco
39
Usibelli Coal Mine
Founded in 1943 it is among the lowest sulfur
coal produced worldwide.

• 1.4 million tons of coal produced in 2005
• 3 mt annual production capacity
• 100mt proven reserves and 250mt of indicated
  Resource.
• Dedicated to innovative technology and
  environmental excellence.

Photos Courtesy of Usibelli Coal Mines Inc and
Chris Arend.
40
Nixon Fork Mine

• Construction upgrading in 2006
• First production in 2007

• 97 person payroll
• Reserves Resources
• Reserves 202,825 tons containing 133,730
  ounces
• Resources 276,200 tons, containing 161,700
  ounces.

Source Mystery Ck Resources
41
Alaska

• Advanced Stage/Large Exploration Projects

Photo Courtesy of Novagold Resources
Donlin Creek Project
42
Location of Advanced Stage/Large Exploration
Projects
Rock Creek/ Big Hurrah
Donlin Creek
Pebble Copper
Chuitna Coal
Kensington
Niblack
Adapted from Rubicon Minerals 2001
43
Donlin Creek Project
Operated by Placer Dome in a Joint venture
agreement with NovaGold Resources and Calista
Corporation

• Orogenic gold-quartz-sulfide sheeted vein
  deposit.
• 33.7 million ounces gold grade, average grade
  of 0.069 opt.
• 2nd largest gold resource in Alaska.
• Potential largest economic stimulus in
  Southwest Alaska.
• Joint venture - Barrick Gold and NovaGold
  Resources.

Photos courtesy of Novagold Resources
44
Kensington Mine
Coeur Alaska -subsidiary of Coeur dAlene Mines

• Mesothermal lode gold deposit.
• Reserves 4.42 million tons _at_ 0.31 ounces/ton.
• Resouces 4.3 million tons _at_ 0.20 ounces/ton.
• Operating mine would provide 250 full time
  workers and spend 13m annually on local
  purchases.
• Commission schedule - 2007
• Construction cost - 238 M
• Mining/milling rate - 1,150 tons/day.

45
Rock Creek/Big Hurrah Projects
- Production goal 100,000 oz/year - Commission
schedule 2007 - Big Hurrah (30 mi. east) will
mined concurrently with Rock Creek
- Ownership NovaGold Resources - Capital
Requirements 87 M - Employment 130 - 150
46
Pebble Copper Project
- Ownership Northern Dynasty - Employment
forecast gt1,000 - Mining rate 200K tpd - Annual
production gt1,200,000 ounces of gold
(equivalent). - Capital requirements gt2,000M -
Commission schedule 2014(?) - Access Road to
Cook Inlet

• - Commissioning will
• - provide local access
• - reduce local community power cost
• provide community needs funding through taxes
• provide rural resident employment
• create economic prosperity for SW Alaska
• contribute to the economic prosperity of Alaska

47
PEBBLE COPPER RESOURCES
48
Niblack Project
Niblack Mining Company

• Located 30 Miles SW of Kechikan
• Copper-Zinc-Gold-Silver rich Volcanogenic Massive
  Sulphide System
• Six major massive sulphide zones
• Thick sequence of variably deformed, felsic
  volcanic host rocks
• Stacked sulphide horizons
• Predictive geology showing excellent mine
  potential
• Proposes to construct 6,000 ft of underground
  access to facilitate deep drilling in 2007

Trio/Broadgauge
Mammoth
Dama Zone
Lindsy/88
Historic Mine Site
Niblack Anchorage
major sulphide occurrence
49
Alaska

• Current Projects and Other Deposits of Interest

50
Location of Recent Exploration Projects
Boulder Ck (U)
Little Squaw (Au)
Arctic
Kougarok (Ta)
Khotol (Ag)
Golden Summit, Gil (Au)
Rainy Pass, Terra Whistler
Richardson (Au)
Goodpaster (Au)
Shotgun (Au)
Big Chunk
Lucky Shot (Au)
Golden Zone
Shulin (C)
Nugget Hill (Au)
Gunsight (Au)
Woewodski Is.
Niblack
Union Bay (Pt)
Adapted from Rubicon Minerals 2001
51
Other Deposits of Interest
Livengood (Au)
Cleary Hill Mine (Au)
Red Devil (Hg)
Kennicott (Cu)
Valdez Creek
Port Moller
Chignik
Quartz Hill (Mo)
Bokan Mt. (REE)
Adapted from Rubicon Minerals 2001
52
Significant Deposits

• Bokan Mtn (Rare Earth) - One of the largest REE
  deposits in N.A. Produced 100,000 tons of U3O8.
• Red Devil (Hg) - Significant war-time production.
• Quartz Hill (Mo) - Largest (Mo) resource in the
  world.
• Kennicott (Cu) - A company maker. Produced 4.9
  million tons of ore at an average grade of 13
  copper.
• Illinois Creek (Au) Very large historic placer
  gold producer.
• Nixon Fork (Au) - Recent high-grade underground
  producer being re-opened by Mystery Creek.
• Livengood (Au) - significant placer, being
  explored for hard rock source.
• Cleary Hill Mine (Au) - pre- and war time
  gold/tungsten hard rock production, being
  explored for extensions of resources.

53
Placer Mining in Alaska

• Provided 86 full time jobs in the State in 2005
  (1,150 in 1994)
• 1.2M U.S. dollars spent in placer mine
  development in 2005.
• Produced 25,000 ounces in 2005 (95,000 ozs. in
  1998).
• Contributes 5.8 of Alaskas total gold
  production.

54
Placer Gold Districts
Council
Placer gold production for select
districts Fairbanks 12 moz Cape Nome 5
moz Iditarod - 1.6 moz Council/Soloman 1.1
moz Circle (Central) 1.1 moz
Nome
Central
Iditarod
Fairbanks
Anchorage
Juneau
Adapted from Rubicon Minerals 2001
55
Alaska

• State Government
• A New Proactive Administration

56
New Republican Administration
Favorable Political Climate

• Governor Sarah Palin Bringing a fresh
  perspective, openness and new energy to State
  government former mayor of MatSu Borough and
  member of the Oil Gas Commission.
• ADNR Commissioner Tom Irwin experienced and
  seasoned mineral engineer with an understanding
  of the workings of State and federal government.

57
Alaska Working with You

• The State of Alaska offers assistance to mining
  companies in the coordinated permitting of major
  facilities through the Division of Mining, Land
  and Water Management and the Division of
  Governmental Coordination.
• The State can also actively participate in major
  development projects through the Alaska
  Industrial Development and Export Authority
  (AIDEA).

58
Alaska Provides

• Exemption of minerals from in-situ taxation.
• Flexible work hours for miners.
• Reasonable State established water quality
  standards.
• A State bonding pool for reclamation activities.
• Reasonable rents and royalties on State owned
  lands
• An exploration expenditure incentive credit
  offsetting mining license or state corporate
  Income taxes.

59
Alaska Mineral Policy Act of 1988
A constitutionally supported declaration by the
State of Alaska that reads Mineral exploration
and development be given fair and equitable
consideration in the multiple use management of
state land. Mineral development be encouraged
through reasonable and consistent non-duplicative
regulations. Mineral development be considered
in the development of the statewide
transportation and infrastructure systems.
Mineral development be encouraged through the
appropriate public information and education,
scientific research, technical studies and the
University of Alaska programs. Economic
development with respect to the state mineral
industry be encouraged with pacific rim nations.
Photo courtesy of S. Petsel
60
Alaska Department of Natural Resources (ADNR)
Office of Project Management Permitting
DMLW- Division of Mining, Land and Water
DGGS - Division of Geology and Geophysics
Office of Habitat Management Permitting
Working Together to Develop, Conserve and Enhance
Natural Resources for Present and Future Alaskans
DOGS - Division of Oil and Gas
Division of Parks and Outdoor Recreation
Division of Forestry
Division of Agriculture
61
Division of Geological and Geophysical Surveys
(DGGS)

• Mission - Determine the potential of Alaskan land
  for production of metals, minerals, fuels and
  geothermal resources.
• Annually completing airborne geophysical surveys
  across the State for the public domain.
• Geologic studies underway and numerous
  publications, land status, and other related
  minerals info available online at
  http/www.akgeology.info
• Produces annual Mineral Industry Report.

62
Airborne Geophysical/Geological Mineral Inventory
(DGGS)
A multi-year project to expand the knowledge base
of Alaskas mineral resources as a catalyst to
private sector investment.

• Products include
• 163,360-scale aeromagnetic and
  airborne-electromagnetic maps
• 163,360-scale bedrock and surficial geologic
  maps
• 163,360-Scale Land status map
• and various geological, geochemical and
  geophysical data compilations

63
Inventory of DGGS Alaska Airborne
Geophysical/Geological Surveys
64
DGGS offers both

• Regional airborne magnetic and resistivity data
  (USGS DGGS, 1970s or older data)
• Detailed airborne magnetic and resistivity data
  (DGGS 1994-? And BLM-DGGS 1997-?)

and
65
DGGS - Regional Magnetics
Chulitna Area
66
DGGS - Detailed Magnetics
Detailed data greatly enhances amount of detail
visible.
HIGH
LOW
Chulitna Area
67
Alaska Mental Health Land Trust

• The Trust, administered by a unit of ADNR, was
  granted 1 million acres of Alaska lands to be
  used to generate revenues to cover the expenses
  of mental heath programs in Alaska.
• The Trust lands offer a wealth of natural
  resources including hard rock minerals, coal, oil
  and natural gas.

Resource Potential!
Photo Courtesy of the Alaska Division of Tourism
68
Alaska Geologic Materials Center

• Alaskas State-run central repository for
  nonproprietary geologic materials available for
  examination by the public.
• Contains mineral deposit rock samples and drill
  core from 920 holes representing 145 mineral
  prospects.
• The entire collection, dominated by oil and gas
  related materials, contains over 10,000,000 feet
  of drill core/well chips and nearly 250,000
  processed slides.

69
Division of Mining, Land and Water (DMLW)

• Mission to provide for the use and protection
  of Alaska's state owned land and water. Aiming
  toward maximum use of lands and waters consistent
  with the public interest. Authorizing important
  resource uses including
• Mining claims, coal and mineral leases, access,
  and plans of operation for mineral development
• Ice roads, support facilities, and exploration
  camps for oil and gas development
• Gravel sales for road construction and private
  development
• Access for public and private entities across
  state lands and waters, including power and
  telephone lines and
• Water rights and water use authorizations.

70
DMLW - Large Mine Permitting Unit
The department is the lead agency for all matters
relating to the exploration, development, and
management of mining, and, in its capacity as
lead agency, shall coordinate all regulatory
matters concerning mineral resource exploration,
development, mining, and associated activities.
Photo of the Donlin Creek Project Area - Courtesy
of Novagold Resources
71
DMLW Factoids

• Mining Claim Locations based on MTRSC system.
  Either 40 or 160 acre claims are allowed.
• Prospecting Sites Exclusive right to prospect
  and stake claims.
• Annual Claim Labor 100 dollars for each 40 acre
  claim or 400 for each 160 acre claim. Cash
  payments accepted.

72
Exploration Incentive Credit Program

• Exploration activities including
• Geochemical and Geophysical Surveys,
• Exploration Drilling,
• Underground Exploration,
• Surface Trenching and Bulk Sampling,
• Can be applied against future State Mining
  License Tax or Corporate Income Tax or State owed
  royalty from mine production not to exceed
  20,000,000.

73
Reasonable Minerals Taxation

• Production royalty of 3 of net revenue from
  sales of minerals derived from state lands
• Mining license tax peaking at 7 of net income
  3.5 year holiday allowed to recover investment
• Corporate income tax peaking at 9.4 of net
  income
• Exploration tax credit not to exceed 1/2 of
  royalty, mining license and corporate income tax
  obligation to a cumulative 20 million within 15
  years

See Alaska Minerals-Related Taxes at
http//www.commerce.state.ak.us/oed/minerals/minin
g.htm
74
Alaska

• Educational Resources

75
University of Alaska
The University of Alaska is a multicampus
university with a breadth of programs that
benefit mining and mineral exploration. The
University of Alaska Fairbanks (UAF), has a
College of Engineering and Mines and a Department
of Geology and Geophysics.
76
UAF - College of Engineering Mines
Department of Mining And Geologic Engineering
Emphasizing engineering as it applies to the
exploration and development of mineral resources
and upon the economics of the business of mining
Mineral Industry Research Laboratory (MIRL)
Established in 1963 by the Alaska Legislature for
the purpose of conducting basic and applied
research to aid in the development of Alaska's
mineral and energy resources. The School of
Mineral Engineering was combined with Engineering
in 2004 to form the College of Engineering and
Mines.
77
UAF - Department of Mining and Geologic
Engineering
Offers well-equipped modern laboratories for
research and class study. Facilities include

• remote sensing lab
• subsurface hydrology lab
• geophysical lab
• atomic absorption unit
• off-campus experimental underground mine

• personal computer lab
• geomechanics lab
• rock drilling lab
• ore microscopy lab
• X-ray diffraction and fluorescent units

78
UAF - Dept. of Geology and Geophysics
Offering under graduate and graduate programs in
a variety of earth science fields with an
emphasis on Alaska.

• M.S. Program in Economic Geology
• Laboratory facilities include
• 40Ar/39Ar rock dating capability
• Microbeam Analysis Lab Electron Microscope
  XRF Spectrometer
• X-Ray Diffraction Lab

Microprobe Photo by Kerry Lear Courtesy of UAF
79
Delta Mine Training Center
A non-profit organization providing quality
vocational education for the minerals industry in
Alaska
Classes in Exploration/Prospecting, Mineral
Processing, Mining, MSHA, HAZWOPER, Emergency
Response, General Business
Established by a consortium between Delta/Greeley
School District, Tanana Chiefs Conference Inc.,
Alaska Miners Association and the University of
Alaska
80
AMEREF
Alaska Minerals and Energy Resource Education
Fund (AMEREF) is an innovative business/
education partnership partially funded by the
State and private contributions that strives to
build a public awareness of the essential role of
geology and minerals in our society
An AMEREF Resources kit
81
AMEREF Works to

• Generate student interest
• Provide industry specific career information
• Promote direct experiences by bringing resource
  professionals into the classrooms and students
  into the work place.
• Distribute information about Alaska's heritage
  and mineral and energy resources, called Alaska
  Resource Kits.
• The AMEREF program has distributed over 35,000
  Alaska Resources Kits to students since 1982.

82
Alaska

• Alaska-based Organizations Working for a Stronger
  Industry

83
Alaska Miners Association
The goals of the Alaska Miners Association are
To provide services to the membership which
will assist them in their mining activities.
Monitor the political processes to help keep
lands available for mineral exploration and
development. Insure that the restrictions on
land and water use are economically realistic.
Increase public awareness of the mineral
industry. Encourage and support responsible
mineral production in Alaska.
www.alaskaminers.org
84
AMA Conventions

• Held annually in November in Anchorage, Alaska.
• Featuring Short Courses, Technical Sessions,
  Trade Show, Award Banquet, History Night, Alaska
  Mining Hall of Fame inductions, and a Rock and
  Mineral Show.
• Also a Biennial Convention in Fairbanks (2008)
  and Juneau (2009) with field trips, short
  courses, technical sessions, trade show, other!

See www.alaskaminers.org for details.
85
Resource Development Council
A statewide, non-profit, membership-funded
organization made up of businesses and
individuals from all resource sectors working
together to promote and support responsible
development of Alaska's resources.
Photo Courtesy of RDC
Governor Murkowski and Secretary of the Interior
Gale Norton meet with the Executive Committee of
RDC.
Growing Alaska though Responsible Resource
Development!
www.akrdc.org
86
Alaska Minerals Commission
Enabled in 1984 to make recommendations to the
Governor and Legislature on ways to mitigate
constraints on mineral development in the State.
Cover Photo of the 2006 Alaska Minerals
Commission Report
Photo Courtesy of the Coeur Alaska - T Arnold
87
Minerals Commission Recommendations for 2007
Calling upon the Alaska State Legislature
Administration to

• Continue assumption and funding of the NPDES
  permit primacy.
• Ensure fair and equitable taxation in state,
  municipal and unorganized regions.
• Ensure all projects, including Pebble-area
  mining projects, receive objective legislation
  and regulatory process that recognize valid
  existing rights.
• Reform water quality regulations related to
  natural conditions, mixing zones, and
  groundwater.
• Provide core funding for the Large Mine
  Permitting Team to ensure objectivity.
• Raise permitting agency staff compensation to
  competitive levels.
• Develop regulatory guidance related to financial
  assurance required for proper reclamation and
  closure.

88
Minerals Commission Recommendations for 2007

• Encourage expanded coal fired base load power
  generation on both ends of the railbelt grid.
• Secure rights-of-way across federal land and
  obtain state title to navigable waters.
• Provide adequate funding for geological mapping.
• Support the AMEREF program.
• Ensure development and maintenance of a
  world-class mining engineering program in CEM at
  UAF.
• Expand Alaska marketing effort as premier place
  to invest in mineral exploration development,
  particularly in Asian countries.
• Enhance and fund programs to attract and train
  skilled workers for the minerals industry.
• Support a minerals industry public education
  program.
• Address federal issues of state concern.

89
Alaska

• The Federal Government
• Taking an active role in building Alaskas
  mineral industry

90
DOI - Bureau of Land Management
Developing a better understanding of Alaskas
mineral potential

• Working to complete Mineral Assessment Studies
  and Economic Prefeasibility Reports for select
  mining districts. (Unique to Alaska)
• Partnering with the States DGGS to complete
  geophysical surveys in mining and exploration
  areas.
• Offering a 20,000-volume, collection of mineral
  information and publications in the Juneau
  Mineral Information Center.

httpjuneau.ak.blm.gov
91
BLM - Mineral Assessment Studies
Objectives

• Identify the type, amount and distribution of
  mineral deposits in select mining districts.
• Determine mineral resource estimates when
  possible.
• Conduct feasibility studies for selected deposit
  types.
• Address land-use and resource issues related to
  mining activities.

Cover for the Juneau Mining District Mineral
Assessment Report, 1988
92
U.S. Bureau of Land Management
Offering Mineral Assessment Reports on the
following districts
Delta River
Aniak
Available from the BLM - Juneau Mineral
Information Center
93
U.S. Bureau of Land Management
Offering Economic Prefeasibility Reports on the
following districts
Juneau Gold Belt
Stikine
Available from the BLM - Juneau Mineral
Information Center
94
Juneau Mineral Information Center

• Located in the BLM Management facility in Juneau,
  Alaska the JMIC offers

• 4000 geology and mining monographs
• 15,000 government geologic publications
• Online access to Federal land status information
  for Alaska
• USBM mineral property files
• Maps, Federal publications and periodicals

httpjuneau.ak.blm.gov
95
USDA - Forest Service
Mineral Prescription Areas
The Tongass Land Management Plan of 1997 (TLMP),
has allowed the Forest Service to designate
specific areas of high mineral potential in
Southeast Alaska to be managed consistent with
mineral development.
Sullivan River
Kensington
Bohemia Basin
Juneau
Greens Creek Ext..
Mineral emphasis areas in red, select districts
labeled in yellow.
Woewodski Island
Kasaan
Union Bay
www.fs.fed.us/r10
Bokan Mtn.
96
The USGS in Alaska
Committed to the Study of Alaskas mineral
resources

• Alaska Minerals Team - Ongoing Current studies
• Alaska Resource Data Files
• Field Record Archives - Available online
• Alaska Geospatial Data Clearinghouse
• RASS Geochemical Data - National Geochemical
  Database
• NURE geochemical Data - National Uranium Resource
  Eval.
• Interagency Minerals Coordinating Group
• Education and Outreach

Www.alaskaminerals.wr.usgs.gov/
97
The USGS in Alaska
The USGS Alaska Mineral Resources Teams Current
Studies Include

• Precambrian and Triassic VMS deposits in the
  Ketchikan airborne geophysical survey area
• Talkeetna Mountains Transect tectonics and
  metallogenesis of south-central Alaska
• Tectonics and Metallogenesis of Alaska
• Alaska Digital Geologic Map Database
• Early Tertiary Slab Window in Alaska and its
  Resource Implications

98
The USGS in Alaska
Alaska Resource Data Files (ARDF)

• Descriptions of mines, prospects, and mineral
  occurrences in the Alaska Resource Data File
  (ARDF) are published for individual U.S.
  Geological Survey 1250,000-scale quadrangles in
  Alaska as USGS Open File Reports and are
  available online from

www.ardf.wr.usgs.gov/welcome/html
99
Interagency Minerals Coordinating Group (IMCG)
IMCG is identifying cooperative ventures which
allow the expedition and production of minerals
data in Alaska with the aim to increase the
dissemination of Alaskan mineral information in
accessible formats.
Http//imcg.wr.usgs.gov/index/html
100
Alaska

• Economic Issues of the Minerals Industry

101
Challenges to the Alaska Minerals Industry

• Rapidly rising gold and base metal prices.
• Optimistic general economy.
• Competition with Canadian flow-though tax
  incentives.
• Infrastructure requirements (including power and
  roads).
• Shortage of personnel and drills for exploration.
• Shortage of trained mining engineers for
  development/operations.
• Shortage of experienced surface and underground
  miners
• Negatives public perceptions of the mining
  industry.

102
The Exploration Stage
Local Wealth Can be Created through

• New resources industry jobs
• Use of local contractors
• local provision of lodging and services
• Acquisition of local supplies
• Tax revenue

Photo Courtesy of BLM - Minerals information
Center
103
Operating Mines
The Impact on Alaska

• Red Dog - 2,445 million in revenues.
• Fort Knox - spends 50 million annually on local
  goods and services and generates 3.4 million in
  revenues to the Borough.
• Greens Creek - largest private employer in Juneau
  with a payroll of 28 million with 295 employees
  and a 5.4 million indirect payroll.
• Mining leads the list for the highest paid jobs
  in the State, averaging 72,125/yr.

104
The Mining Industry

• Being recognized as leaders in working with
  stakeholders on issues of sustainable development
  (Cominco, Placer Dome, Coeur Alaska).
• Companies take a proactive approach to
  environmental issues.
• Successful companies are developing and utilizing
  state of the art scientific and practical
  technologies.

Improving its Legacy!
Photo Courtesy of The Alaska Division of Tourism
- Denny Daniels
105
The Mining Industry
Jobs and wealth to the community

• There are 248,053 people employed in the U.S.
  mining industry including coal and sand and
  gravel, 28,080 in metal mining, (3,000 total in
  Alaska).
• There are 14,363 mining operations in the U.S.
  with 180 metal mines.
• Total value of production from coal, metal and
  non-metal mines in the U.S. - 66 billion
  dollars, (1.4 billion dollars in Alaska - 2.2).

106
Alaska Comparisons

• Alaska ranks 13th in the U.S. in total non-fuel
  mineral production value.
• 1st in zinc production
• 2nd in silver and lead production
• 3rd in gold production
• 22nd in coal production
• Of 408 million spent in the U.S. on non-fuel
  exploration in 2005, 101 million was spent in
  Alaska.

107
Prime for Discovery and Development
Alaska has

• A healthy mineral endowment!
• A cooperative regulatory environment!
• A State government supporting responsible
  mineral development and providing assistance
  through various departments and incentives!

Used with permission, Courtesy of Alaska Division
of Tourism. Photo by Mark Wayne.
108
For more information on the Alaska Minerals
Industry
DNR - DGGS
Alaska Miners Association
Commerce - OED/OMD Rich Hughes 907-451-2738
Fairbanks
Dave Szumigala - 907-451-5025 Fairbanks
Steve Borell - 907-562-9229 Anchorage
DNR - DMLW Rick Frederickson -
907-269-8621 Anchorage
httpwwwdggs.dnr.state.ak.us
www.alaskaminers.org
http//www.commerce.state.ak.us/oed/minerals/minin
g.htm
www.dnr.state.ak.us/mlw/mining/index
109
Acknowledgments
The sponsors of this presentation (Alaska Miners
Association and the Department of Commerce,
Community and Economic Development - Office of
Mining Development) would like to thank the ADNR
- Division of Geology and Geophysical Services
(DGGS) and The BLM - Juneau Office as well as
the corporations, non-profit groups and
individuals who provided the information and
photos included in this presentation Avalon
Development, Teck-Cominco, Kinross Gold,
Kennecott Greens Creek Mining Co., Coastal
Helicopters, Northstar Exploration, Novagold
Resources, Usibelli Coal Mines, The Resource
Development Council, Calista Corporation, Rubicon
Minerals and others.